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Optimal Allocations A social planner chooses c 0 1 , c 0 2 , c 1 1 , c 1 2 , c 2 1
Optimal Allocations A social planner chooses c 0 1 , c 0 2 , c 1 1 , c 1 2 , c 2 1 , and c 2 2 to maximize a sum of the two investors' expected utilities {ln(c 0 1 ) 0.9[(2/3) ln(c 1 1 ) (1/3) ln(c 2 1 )]} {ln(c 0 2 ) 0.9[(1/2) ln(c 1 2 ) (1/2) ln(c 2 2 )]}, subject to the resource constraints
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